Yesterday and Today: What Low Interest Rates Actually Mean

One of the phrases companies love to use right now is “historically low rates” (guilty!), but what does that actually mean? Is it just lip service getting people intrigued or is there more to it than that? We took a look back at the last 30 years of data to show you what exactly goes into the phrase we all love so much.

Tracking the Rates

Starting in 1971 Freddie Mac, a government-sponsored enterprise, started actively tracking mortgage interest rates. To track the rates, Freddie Mac aggregates rates from about 80 lenders across the country to come up with weekly national average mortgage rates. The rates used are typically those of borrowers with strong credit scores and large down-payments. This means that these rates tend to be among the lowest available and will not apply to every borrower in every situation.

Looking at the rates from the start of the tracking you can see that there have been some large fluctuations, especially in times of recession. Since a high in the 1980s of rates in the high teens, they have been dropping steadily on average. Looking at the graph below you can see those trends in action. 

Where are we now? Where are we headed?

2020 has been quite the year… In so many ways. One way we keep seeing the year 2020 surprise us is with new record breaking mortgage rates every month. Last month the national average rate was a record low 2.98%, however, that record was quickly beaten this month with an average rate of 2.88%. There is no way to know for sure what will happen in the coming months, but there are plenty of predictions pointing toward a new low coming.

What does this mean for me?

I’m sure you have heard it before, but with these rates there is no better time to purchase a new home or refinance your current one. If you are thinking about purchasing a home, whether it is your first home, an upsize or a downsize… Now is the time to act. The low rates mean your dollar will stretch further and you may be able to afford more than you think or find that dream retirement home you have been longing for. If you already own a home that you plan to stay in, looking to a refinance for monthly savings may be the way to go. To help you visualize what you can afford or how much you can save, we have added two new calculators to our arsenal:

Review a Possible Refinance

Preview Your Purchase


Wherever you find yourself on the housing road map, now is the time to act. Nothing is certain, especially in 2020, and locking in a low rate now will benefit you for years to come. Connect with a Cambria Mortgage professional to review your calculations and options today!

Think Fast: Speed is Key in Today’s Market

As a prospective homebuyer in today’s competitive housing market you're expected to act fast. Cambria Mortgage is proud to offer the tools and technology that allow us to not only accomodate that need, but far exceed expectations. With the Cambria Mortgage Mobile App we’re able to stay ahead of the competition, leading to an exceptional outcome time and time again.

Affordability Just Increased for Tons of Buyers!

Financing a home just became more affordable for hundreds of thousands of buyers… News recently dropped that Mortgage Insurance will cost less on new FHA home loans! Beginning March 20, most FHA loans will carry lower mortgage insurance premiums. Costs are based on loan amount, so savings will be even higher on pricier homes. With lower costs, you'll save on your monthly payment and require less income to qualify for the mortgage you want!

A Drop in Rates Opens the Door for Prospective Home Buyers

The fear-inducing headlines surrounding the housing market are everywhere today. It seems we cannot scroll through social media platforms without coming across some sort of clickbait article spreading doom and gloom of what’s supposedly just around the corner. The unfortunate part of all this, is when information is consistently unclear it can generate a lot of unneeded fear and uncertainty within the market. We’re here to let you know it just doesn’t need to be that way. Cambria Mortgage has your best interest in mind, so we’ll get right to it and start this article with the facts…

An Early Take on 2023’s Market

Let’s take a look back at the mortgage and real estate world we lived in throughout 2022, shall we? To be succinct, it was a tough time for the market. Interest rates continuously jumped, more than doubling over the course of the year while simultaneously home prices rose… Over and over again. After living through the glory of the pandemic housing market boom, 2022 conditions were simply challenging.

More Home for Less Money?

The Federal Housing Finance Agency (FHFA) recently announced an increase, taking effect in 2023, in the amount of money that can be borrowed through a standard home loan. The standard loan limit, also known as the conforming loan limit, rose by just over 12% to a maximum of $726,200 in most areas. This is the 7th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $310K over seven years. What does this mean?

Date the Rate, Marry the House… What Does That Mean?

The buzz around the real estate market just keeps getting louder. Between home prices and interest rates, there's definitely enough to talk about. The latest word on the street is this: Date the rate, marry the house… But what does that really mean?

Today’s Hot Topic: Mortgage Interest Rates

Mortgage interest rates are without a doubt a hot topic right now. We’ve seen rates rise dramatically this year, that’s no secret; but it is important to remember they’re returning back to normalcy from historic lows. Yes, we said it… These rates - though they carry a lot of sticker shock - are somewhat normal...

Your Housing Market Questions Answered

If you have questions about what is happening in the mortgage world right now, you are not alone. Between fluctuating interest rates, shifting inventory and leveling home prices many consumers have questions about what this all means. Don’t worry, we’ve got you covered! Check out our answers to the top three questions we’ve received recently…

5 Ways to Be a Better Buyer

Unless you’ve been hiding under a rock for the past few years (no judgment here, we wouldn’t blame you) you’ve seen the headlines and you have heard the chatter surrounding the current housing market. This market is a tough one and the competition is heavy. We’ve laid out the ways you as a buyer can be better in more ways than one! 

The Early Bird Gets the Spring Housing Market Worm

We know, it’s still incredibly chilly outside and it may feel like spring is nowhere in sight. However, anyone in the real estate industry will tell you... The market is already heating up. With peak home buying season just around the corner, it’s important to know how and when to start preparing to purchase. We’ll lay that all out below, so keep reading!

In 2022 Cash (Out) is King

Nothing lasts forever… Including tremendously low interest rates. Even if it is ever-so-slightly, in 2022 interest rates are expected to rise. Over the past few years though, home values have appreciated at an incredible pace. For the refinance sector, these factors draw the majority of consumers away from rate and term refinances and point them toward a cash-out focus instead. Most current homeowners have built up quite a bit of equity, which should theoretically make qualifying for a cash-out refinance fairly easy for most. So is it the right move for you? We’ve laid out the most common uses for this type of refinancing so you can explore the possibilities. Like always, your team at Cambria Mortgage is here to help and support you in your home financing journey. Don’t hesitate to reach out with any questions or to begin the process.

Expectations of 2022’s Housing Market: A Cool Off, Not a Meltdown

I think we can all agree we are ready for some familiarity and to put these unprecedented times behind us. However, while we hate to say it, we must; there was nothing predictable about 2021, including the housing market. Interest rates hit record lows and we saw the strongest yearly growth in single-family home prices ever. Foreclosure rates were at historic lows and home sales hit their highest level in 15 years. Continuously, homeowners were able to sell their homes quickly and usually well above asking price. Potential buyers grew fatigued attempting to secure the winning bid after losing out on numerous homes. In short, 2021 brought one of the most competitive housing markets in recent U.S. history. 

Low Rates: Opportunity is Still There, For Now

Over the past year, we’ve been spoiled with mortgage interest rates at rock bottom levels we’ve never seen before. Recently though, toward the end of September, rates increased. Don’t panic… You haven’t missed your opportunity to save with a low rate… Yet. While the days of waiting for a lower rate are behind us, today’s mortgage interest rates are still historically low and very much worth taking advantage of.

Non-traditional employment? You may need a non-traditional mortgage solution.

For many people, being their own boss and owning their own business has been the ultimate employment goal. In light of COVID, many of these people are choosing now to take the leap and make their dreams a reality. According to government data from the second quarter of 2021, more Americans than ever are leaving their jobs to chase their dreams of entrepreneurship. While that all sounds exciting, it can put a crimp in your homeownership plans if you are not prepared. Read more for how Cambria Mortgage can help find the right program for your employment situation.

Ready to Own a VRBO or Airbnb IRL?

Have you gotten bit by the travel bug? You’re not the only one. The desire for people to get out of the surroundings they have been in pretty constantly for the last 18 months is increasing the demand for short term rentals. If you have ever had interest in owning an investment property, now may be the time to take the plunge and purchase your first. Not sure where to start? We have you covered. Read on for some tips on taking the plunge.

The Mortgage Process: Part 5, Closing

With most of the steps of the mortgage process in the rearview mirror, it is now time to cross the finish line and close on your new home. Phew! What does the closing process look like? Read on for what to expect when you come to the closing table.

How to Humanize your Purchase Offer

We’ll be frank with you, buying a home mostly comes down to numbers, but sometimes… Not completely. There’s value in giving the seller a little insight into the person behind the offer... Especially in a market where there are more buyers than sellers and your competition is fierce. It’s times like these where writing a personal letter to the seller just might pay off. Here are 5 tips to keep in mind the next time you submit an offer and want to give it an extra boost.

The Mortgage Process: Part 4, Processing and Underwriting

Pre-approval? Check. Offer on the perfect house accepted? Check. Mortgage application process completed? Check. Ok, so what is next? Well, this step is really for us rather than for you. Up next in the mortgage process is Processing and Underwriting. Read on to learn more about these next steps.

Three eMortgage Musts You Shouldn’t Miss

While CDC guidelines seem to be loosening with each passing day, for many people things still don’t feel “normal” enough to be comfortable meeting in-person. So the question is… Can you still obtain a mortgage with limited contact? Yes, at Cambria Mortgage you definitely can. Getting a mortgage virtually is a popular option, and we’re more prepared than ever to provide that service to our clients. Here are three tips to help your transaction go smoothly:

The Mortgage Process: Part 3, Application

You have found “the house” and your offer has been accepted… Really exciting stuff! But what’s next? When you initially completed your application, upon review and approval, your lender either provided a pre-qualification or a pre-approval letter. The terms are similar, but not the same. A pre-qualification is a pretty vague application including very basic pieces of information. While this information may have allowed your lender to give you the initial OK to search for homes... If you chose this route, now that you have found the house you are going to purchase, it is time to revisit that application and add more specific documents and information to keep your loan file moving along in the process.

5 Hacks to House Hunt Like a Pro

Hands down, house hunting tends to be one of the most exciting parts of the home buying process. However, being unprepared can really take away from the experience. To ensure you have the best home buying adventure possible, we’ve cultivated 5 hacks that will have you house hunting like a pro.

The Mortgage Process: Part 2, The Search

Now that you’ve taken your first step toward homeownership and have met with a Mortgage Consultant to better understand how much you are approved to spend on a home, it’s time to move onto the more exciting step two… SHOPPING! In this article we’ll cover how to get ready to shop for a home, beginning the home search process and some tips and tricks we have learned over the years supporting our clients.

The Truth About Buying in a Seller’s Market

Anyone who has recently perused potential dream homes online can tell you, the options are slim and well… Prices are high. That leads to many questions for buyers, including if now is even the right time to buy a home. In this article, we’ll lay out what effect today’s current housing market truly has on those navigating it as a potential home buyer. Since a stop-and-go home buying journey isn’t ideal, it’s our hope we can help you get a better grasp of whether or not you should pump the brakes or hit the gas on your home buying journey.

The Mortgage Process: Part 1, Where to Begin

Obtaining a mortgage can be the largest financial transaction many people will participate in throughout their entire lives. With such a big investment on the line, it is to be expected that there are multiple steps to achieve that ultimate goal of homeownership. To many the home financing process can appear daunting or scary but with the right preparation and team alongside you, the experience can be smooth and efficient.

Roses are Red, Violets are Blue, Interest Rates are Historically Low… You Could Save $$$ Too!

Valentine’s Day is almost here and love is in the air. Do you know what else is in the air? Talk of low interest rates. If you haven’t caught wind that interest rates are historically low consider yourself an anomaly. Mortgage interest rates have continued to hover near all time lows for quite a long stretch of time, meaning now could be the best time for you to take advantage of them by refinancing your current mortgage or locking in a low rate for your next home purchase. Unlike eternal love, low interest rates may not last forever so take advantage of the situation while you can!

Thinking About Selling? Don’t Miss These Steps

If you are thinking about selling your current home, you may have been given a lot of advice about how to prepare. Things like decluttering, a fresh coat of neutral paint, deep cleaning and staging may have been thrown your way more times than you can count… But is that all you need to do? Read on for tips on other areas to ponder before adding that “For Sale” sign in the front yard.

5 Steps to Achieving Your Goal of Homeownership

As the entire world is aware, a fresh new year is ahead of us. Like many others, you’ve probably taken some time to reflect on how this last year has shaken out and you've likely set some new goals for yourself. In order to best achieve a goal, we need to map out exactly what needs to be done to get there. If purchasing a home is on your list of resolutions this year, keep reading because we’re laying out exactly what you need to do to crush that goal in 2021.

3 Things Millennials Should Know Going Into 2021

If you’re like many millennials, this pandemic has made you reevaluate your current living situation and wonder if you are ready for a home of your own. It’s been an eye-opening year for sure. Despite being the group affected most by the economic downturn, millennials remain motivated to make a move. 2020 was a record-setting year when it comes to mortgage originations, especially among Millennials. In fact, in September, the Ellie Mae Millennial Tracker reported that 61% of all purchase loans this past July were made by homebuyers between the ages of 21 and 40. That’s a huge number, and an even bigger indicator of what’s next for the housing market. Here’s some things Millennials should know going into 2021:

2021 Housing Forecast

What can we say about 2020 that hasn’t already been said on the late night shows, twitter and in every meme on the internet? To say the world is looking forward to 2021 is the ultimate understatement. While 2020 was a solid year in the housing market, the same cannot be said of all industries. At Cambria Mortgage we feel blessed that we were able to help our clients throughout this year and into the future. Now, on to 2021! Here’s a look at what we anticipate for the coming year:

Creating Your 2021 Vision Board: Is a New Home One of Your Goals?

In a year full of uncertainty, one thing is for sure… It was easier than ever to lose sight and hope of what’s next. Many who planned on buying a home this last year decided to postpone that dream. But interest rates are stellar and it’s time to act. If you’re like us, and ready to put the doom and gloom of 2020 behind you, you’ll enjoy this article.

Ways to Make Sure You Are Getting the Most Out of Your Remodel

In 2020 many of us spent more time than ever in our homes and that led many to discover things about our surroundings that we no longer love or just do not work for our new reality. With an average of 3 out of 5 (61%) Americans tackling at least one home improvement project since March 1, 2020 there are a lot of changes happening within our households. If you fall into the percentage making updates, read on for tips to get the most out of your remodel.

Homebuying Tricks & Treats: Creepin’ it Real

Dying to jump into the market but finding home buying horror stories and misconceptions are haunting you? With Halloween right around the corner, we’re addressing some common ghost stories and laying out what’s a true treat vs. a false trick. Let’s get to the thrills and chills, shall we?

WFSH: Work From SECOND Home Life?

The weather is growing cold and many snowbirds are starting to make preparations to head south… Sound appealing but not quite at the snowbird stage of life yet? Can you still get in on the warm weather action? With the current changes to many people’s working environments you may be able to live the snowbird life while still maintaining your working routine. Read on for the benefits of owning a second home.

How The Election May Affect the Housing Industry

There are a handful of factors that impact mortgage rates. Most of them, ones you’d never think to consider. For example, the weather impacts rates; when natural disasters take place like a hurricane or earthquake, rates tend to decrease. More expected, generally speaking, when the employment situation and economy improve you can expect rates to increase. But what happens when there is a presidential election?

Mortgage Payment Breakdown: Where Does Your Payment Actually Go?

Chances are you know exactly how much you make your check out for every month when you pay your mortgage, but do you know what you are actually paying for? As a company, we talk a lot about interest rates and closing costs when investigating a refinance or purchase, however, once all the paperwork is signed it’s easy to lose track of the exact terms of our mortgage. Let’s take a deep dive into exactly what your mortgage payment is allocated toward. Read on for a full mortgage payment breakdown.

Clues You Should Refinance

It’s no secret that rates are low, and it seems they just keep getting lower. In August, the nation’s average…

Is 2020 Still Your Housing Year?

We don’t think anyone would disagree with stating this year has been unexpected, difficult and confusing for most everyone... but especially for prospective homebuyers. Those who planned on 2020 being the year they jumped headfirst toward their dream of homeownership may now find themselves doubting that idea altogether. Fear surrounding another housing crash like that of the last recession still lurks, however all signs are still pointing toward a positive housing climate.

10x Our Team Blew Us Away

At Cambria Mortgage our team’s primary goal is to make it easy for clients to finance or refinance a home. It’s important to us that our clients feel at home before they even find one; here are 10 instances where we were especially blown away by post-closing feedback.

But First, Get Pre-Approved

If you’re thinking about buying a home this year, I’m sure you already have many things on your to-do list. Maybe you have been looking into reevaluating your budget and saving for a downpayment; you’ve probably started to get an idea of what your credit looks like; heck, you may have even begun to dream up your future home online. The list goes on… But what is the #1 thing you should do right now?

Celebrate Homeownership Month with Cambria Mortgage

June is here, and you know what that means… It’s officially summer and school is out; the longest day of the year comes and goes; wedding season is typically in full swing. But what else? National Homeownership Month. We celebrate a key American value and the cornerstone of our economy every single day of June.

Back to Basics: How to Create (and Stick to) a Budget

For many, the recent global health crisis has thrown us a financial curveball. With any budget, and especially with the amount of uncertainty at large, it’s important to periodically examine your finances to make sure you are optimizing your assets and preparing for the future. If you do not currently have a budget, this is a great place to start. Read on for tips to create, and live by, a budget.

Preparing to Purchase: 5 Things to Do to Get Ready to Purchase Your New Home

Buying a new home is an exciting prospect. The spring and summer housing market is heating up and rates are low ‒ you are ready to take the leap…right?! If you are feeling compelled to ‒ or maybe just pondering the idea of ‒ making the move into a new home purchase, make sure you don’t hit any potential bumps along way by following our tips below.

Tips for Getting a Mortgage Virtually

To many, the mortgage process may seem daunting to begin with… add a pandemic to the mix and it’s a recipe for disaster right? Wrong. While things around the office definitely look a lot different while we are in the midst of social distancing, things aren’t all that different when it comes to the mortgage process. Being we live in a world of advancement and technology, we were ready for a situation like this and haven’t missed a beat. Here are a few of our most helpful tips to make the virtual mortgage process a breeze.

Good News from the Housing Market (Why This is NOT 2008)

The most popular phrase during this pandemic seems to be, “during these uncertain times…” Some may even use this phrase when referring to the housing market. While a comparison to 2008’s housing crisis is certainly reasonable, the current housing market shows positive signs that keep us optimistic and show this is not a do-over of 2008. Read on for factors in the current housing market that show things are looking up.

A Financial Planner’s Insight on a Changing Market

The present economic climate seems to be trending toward a bear market for the first time in 11 years. Bear market? Don’t let that last sentence come off as a bearer of bad news… When the market shifts like this, it is not a time to worry; it is simply a good indicator that it’s time to take a look at your current portfolio and prepare for the future.

Why Refi? What it Means to Refinance and Why You Should Look into it

Interest rates, interest rates, interest rates. That seems to be the only thing in the headlines regarding mortgages these days. The TV, radio and internet ads are all telling you NOW IS THE TIME TO REFINANCE! But why? What does it mean to refinance and what do you have to gain? Read on for the many reasons to refinance to see if it really is time for you to take a closer look.

Reasons to Refinance

The term refinance encompasses so much in terms of home loans. There are many different types of refinances and many…

Seasonal Migration; Not Just for The Birds

As the weather takes a turn for the worse, the thought of getting away to a warmer climate becomes more appealing. The term “snowbird” is often used to describe those who migrate from colder climates to sunny locations for extended periods each year. Becoming a snowbird and owning a home in another state can provide more than just a respite from the cold. Read on for more about the benefits of being a snowbird.

2018 Mortgage Forecast

2017 saw another strong year for the housing market, and 2018 looks to continue the trend. At Cambria® Mortgage™, we are grateful to be able to assist our clients from start to finish to find the best loans for their current situations. Read more about how Cambria Mortgage can assist you with your homeownership needs in the year ahead.

End of the Year Financial Organization

As we approach the end of 2017, it is a good time to take a look at your finances and make sure your current strategies are still working for you. Here are some places to look for ways to maximize your fiscal year.

Reverse Mortgage: Why Acting Now Will Help You Get the Most Out Of Your Home

Beginning in October 2017, there are changes coming to the FHA backed Reverse Mortgage program that could affect the funds available to you from your home. If you or someone you know has ever thought about the benefits of a reverse mortgage, now is the time to act. Read on for information on Reverse Mortgages and how to get the most out of your home.

Rates are Rising: Why Not to Worry

The recent headlines allude to a rising rate environment, but that may not tell the whole picture. While rates have increased slightly in the past few months, they are still near historical lows and should not be seen as a deterrent for buying a home or securing a lower rate with a refinance.

2017 Mortgage Forecast

As 2016 draws to a close, we’re grateful for the strong housing market, which has enabled us to help hundreds of individuals and families invest in real estate, purchase new homes and vacation homes, and reduce their interest rates. As we look ahead to 2017, we anticipate the local housing market will remain strong.

Discover the Benefits of Reverse Mortgages with Jeff Flanery, CRMP, of Cambria® Mortgage™

As part of Cambria Mortgage’s commitment to helping our customers find the best mortgage loan programs for their needs, Jeff Flanery, CRMP, Reverse Mortgage Specialist with Cambria Mortgage, is hosting a series of seminars for seniors and family members. At these informative, no-obligation seminars, Jeff will explain the many benefits of reverse mortgages, how they work, and who is eligible.

Vacation Homes: How to Buy a Piece of Paradise

Do you find yourself returning to the same pristine lake every summer, wishing you owned your own piece of paradise? If so, it might be time to listen to your heart and consider buying a cabin or other vacation home. We asked Matt Helling, Vice President of Sales and Operations at Cambria Mortgage, for his advice and insights.

Plan a Winter Getaway

With 100-plus days of winter looming on the horizon, it’s not too late to start planning a warm weather getaway. And, with a wealth of bargain travel websites at your fingertips and these useful tips, you can escape to Florida, Mexico, or the Caribbean without blowing your budget.

Blue Skies for Homeowners: What to Expect in 2016

If your list of New Year’s resolutions includes refinancing your existing mortgage or buying a new home, now’s a great time to get started. “We’re very optimistic about the economic outlook for 2016,” says Matt Helling, Vice President of Sales and Operations at Cambria Mortgage. "With historically low mortgage interest rates, attractive programs, and a loosening of credit guidelines, 2016 looks to be a strong year for homeowners."

Is a Reverse Mortgage Right for You?

Jeff Flanery, Reverse Sales Manager with Cambria Mortgage, has been helping people transition to reverse mortgages for nearly 14 years. “I work exclusively with reverse mortgages, which is extremely gratifying, as I love helping people extend their nest egg and live better in retirement,” Flanery says. Here, he offers a brief overview of reverse mortgages and their benefits.

Gift Giving Made Easy: Fun and Ingenious Ways to Streamline Your Holiday Shopping and Manage Your Budget

When it comes to holiday gifts, it really is the thought that counts. While it can be fun to indulge your family and friends with extravagant gifts, it’s not always necessary. With a little forethought and planning, it’s easy to manage your budget and impress your loved ones with cost-effective gifts that convey how much you care about them.

Ready to Invest in Income Properties? 5 Tips to Get Started

Investing in income properties can provide an array of short-term and long-term financial benefits, including regular cash flow, tax deductions, potential appreciation, and more. We asked Jim Starr, realtor with Edina Realty, for advice on getting started.

Ask the Expert: Finding the Right Financial Advisor

As we head into the last quarter of 2015, most of us would like to earn more, save more, and invest more money in the year ahead. We asked Bruce Helmer, noted financial advisor, author, speaker, and radio host, for his advice.

Ask the Expert: Smart Savings Strategies for Every Age

When it comes to financial advice and guidance, it makes sense to talk to an expert. We asked Bruce Helmer, financial advisor and founder of Wealth Enhancement Group, headquartered in Plymouth, Minnesota, to share his proven strategies for success. He’s a regarded financial advisor, author, speaker, and radio host and says no matter where you are in life, you can use these tips to make the most of your savings dollars.

Why Refinancing Makes Sense Right Now

By replacing your original mortgage with a new, more cost-effective loan, you can lower—and lock in—your interest rate, improve your term, reduce your monthly mortgage payments, and save thousands of dollars over the life of your loan.

Why Using a Realtor Will Pay Dividends

Buying or selling a home is among the biggest decisions you make in life. With so much on the line, it makes sense to work with professionals who have a wealth of information about the process from beginning to end. Not only do realtors have vast knowledge about the market trends driving prices and sales in your area, but they also have access to an immense network of other professionals and potential buyers. When it comes to marketing your home and working through the details of an offer, realtors can be trusted to present your home in the best possible light and negotiate a deal that’s right for you and your family.

Want to Save Money in the New Year?

After the Christmas bills pile up, many homeowners find themselves in a financial crunch and in need of some long-term financial savings strategies. There is good news for 2015, though. Interest rates are still near historic lows, which means this could be a great time to boost your monthly budget by refinancing your home mortgage.